# Bilbel Capital H1 2026 Letter

> Bilbel Capital's H1 2026 letter highlights Water Oasis Group's cash strength and acquisition strategy.
- Title: Bilbel Capital H1 2026 Letter · Seekingalpha | Shortify
- Summary: Bilbel Capital's H1 2026 letter highlights Water Oasis Group's cash strength and acquisition strategy. Bilbel Capital's Water Oasis Group holds HK$1 billion…
- Keywords: bilbel capital, water oasis group, hk$1 billion, acquisition strategy, clinic purchases, real profit, dividends, hk$898 million market value, tebs revenue, ai impact, money, business
- Source: Seekingalpha — https://seekingalpha.com/article/4954343-bilbel-capital-h1-2026-letter
- Author: Fund Letters
- Published: 2026-10-15T08:10:00+00:00
- Read time: 2 min
- Topics: bilbel capital, water oasis group, hk$1 billion, acquisition strategy, clinic purchases, real profit, dividends, hk$898 million market value, tebs revenue, ai impact, money, business
## Bilbel Capital H1 2026 Letter
Bilbel Capital's H1 2026 letter highlights Water Oasis Group's cash strength and acquisition strategy.
## Water Oasis Group
Water Oasis Group Limited began as a beauty product seller and now generates 93% of revenue from services with 14.9% annual profit growth since 2002.
## Brand Advantage
Water Oasis lowers perceived risk and raises customer status through strong brand links that keep clients returning.
## Prepaid Treatments
Water Oasis offers discounts for prepaying treatments, which customers use to reduce perceived risk and increase brand loyalty.
## HK$1 Billion Cash
Water Oasis holds HK$1 billion in cash including HK$750 million of non-refundable customer payments for treatments not yet provided.
## Cash Management
Water Oasis uses cash for dividends, opening clinics, share buybacks, and buying existing clinics with 90% profit payout as dividends.
## Acquisition Strategy
Water Oasis targets small Hong Kong clinics that face pressure from Shenzhen clinics and rising costs.
## Millistrong Acquisition
Water Oasis bought Millistrong Group for HK$29 million after its profits were wiped out by protests and Covid.
## Real Profit Calculation
Real profit excludes investment property revaluations and adjusts PP&E depreciation to estimate true earnings.
## Profit Projections
Water Oasis could achieve real profit of HK$252 million by 2030 after spending HK$300 million on clinic acquisitions.
## CareCloud Analysis
CareCloud's TEBS revenue fell 5.6% after acquisitions but remains within normal structural churn rates.
## AI Impact on CareCloud
AI could hurt CareCloud through higher customer acquisition costs, price competition, or lower client revenue.
## Bilbel Capital Returns
Bilbel Capital achieved 1,748.3% total return since inception with strong performance in 2022-2025.
## Investment Strategy
Bilbel Capital screens 15,000 stocks monthly to find undervalued opportunities with high growth potential.
## Dividend Strategy
Water Oasis raised dividends by 43% in May 2026 and plans to buy existing clinics to boost returns.
## Future Cash Position
Water Oasis will have HK$879 million cash left by 2030 after spending on clinics and dividends.
## Key takeaway

Bilbel Capital's Water Oasis Group holds HK$1 billion cash and plans to buy clinics to boost profits.